After a huge loss in the economy due to the covid-19 pandemic, the business sector is now recovering with the effective vaccination drive. Several countries have now started easing lockdown measures, and border movements have also started. As people have started settling into new normal, the rental market for private apartments and Housing Board apartments in Singapore are experiencing great attention from buyers.
As per the flash data received from the Singapore real estate market, the rents, as well as leasing volumes for condominium units and HDB flats, increased by a considerable level in the month of October as compared to September. On the other side, the monthly rents for Singapore condos also increased by 1.3 percent in the previous month as it was 0.7% higher than September.
The condo rents have increased by 9.1% in comparison to the October month of the previous year; however, the prices are still 9.1% lesser than the peak rise reported in January 2013. It is observed that condo rents in the Singapore housing market have not increased than 1% or stayed at a flat 0% for the previous five months. The current rise is reported as a result of the border reopening measures that increased the movements of several foreigners and permanent residents to the potential residential market in Singapore.
Other than this, many Singaporeans have also started renting homes after selling private properties or flats in the past few months for cash due to the rising influence of the price hikes. Reports reveal that the HBD flat rents increased for the 16th consecutive month. Although HBD rents were considerably high by 8.3% in comparison to the price reported in the month of September last year, they are 6.4% lesser than the peak estimates of August 2013.
Other than this, rents for all flat types in the HDB area rose within the last one month; however, four-room flats were an exception. The units available in both non-mature and mature estates experienced a rise of 0.2% each.
As the supply of new launch condo units and HDB flats is delayed in the area due to disruption of the construction sector, it has directly affected rental prices in the Singapore housing market. If we consider the rental volume of around 4651 units, the estimated rise of 10.1% was observed for the condo market in comparison to 4225 units available in September month.
The major share of the rented units is located in the suburbs that making up almost 36.5% of the overall rental volume. Several HDB flats were leased in October month with an estimated rise of 8.2% over the maximum available units of 1751; however, the count was limited to only 1619 units in September month.
Predictions reveal that demands for both condos and HDB flats will rise in the coming months as more expatriates, students, and their families are expected to arrive at Singapore’s borders. It is expected that the rents may rise by almost 6%-10% for both these segments.
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